KOCHI: Gold prices surged to a record high for the second day in succession in Kerala with the price for a sovereign (8 gm) moving up by Rs 320 to reach Rs 25,440 on Friday morning tracking global cues.
The price per gram went up by Rs 40 to hit Rs 3,180 in the morning. The price, however, corrected in the afternoon to close at Rs 25,200 per sovereign and Rs 3,150 per gram.
The surge in the price of the yellow metal is mainly due to the uptrend in global markets with investors preferring gold as a safe haven option in the background of heightened tension in the Middle East over the US-Iran stand-off and the worsening trade relations between China and the US. A possible cut in interest rates by the US Federal Reserve also helped the upsurge, analysts said.
A section of the traders in Kochi feel that that the uptrend is unlikely to sustain in the long term if the US and China reaches an agreement on trade issues during the scheduled meeting between US president Donald Trump and Chinese President Xi Jinping in the coming days.
In New York gold has been trading at $1,398.55 per troy ounce (31.05 gm) up by $.5.78 compared with the previous close.
